"Charity begins at home" : The populist uprising against free trade - by Andrew Leonard

Participation in the global economy has never been more crucial ( say some), but left and right agree: "Boo to globalization".

A down economy always seems to go hand in hand with tensions over trade. And never mind the fact that so-called free trade pacts are really just vehicles through which powerful American corporate sectors such as the pharmaceutical industry seek to leverage access to American markets for their own specifically crafted opportunities. The phenomenon is that it reflects a much deeper distrust of engagement with the global economy that goes back a lot further than one appears prepared to admit. The economic argument for free trade -- that everyone benefits when countries maximize their
comparative advantage -- has little sway when the on-the-ground reality is that the winners from free trade in the Western World seem to be far outnumbered by the losers.
 
Growing income inequality and a progressively more squashed middle class have been in the works for decades. Yes, expanded trade with China has lowered consumer prices for all kinds of goods, but that doesn't compensate for the fact that job security is in tatters and the social welfare net is paper-thin.
People feel vulnerable, and vulnerability breeds fear. One wonders if it could all have been different -- if the U.S. had a comprehensive health-care system already in place that did not link your insurance to your job, or if tax policy didn't disproportionately favor corporations and the wealthiest Americans over the masses, would the average U.S. citizen feel less threatened by global competition? But it seems almost pointless to ask that question now. That ship has sailed. The damage is done and populists of every political stripe are itching for a trade war.

Note EU-Digest: as the saying goes, "charity begins at home".


For more: Bad timing alert: The populist uprising against free trade - Globalization - Salon.com